PartyGaming Rocked by BetOnSports Executives Arrest

After making solid gains in the last week following industry analysts' predictions that the Goodlatte bill won't make it through the US Senate in time to become law, the online gaming industry worldwide was rocked today by the news that the Chief Executive Officer of BetOnSports was detained in the US and now faces racketeering charges.

PartyGaming shareholders today have been stunned by news their holdings have plummeted by almost 20%. PartyGaming is the parent company and operator of the world's largest online poker room, PartyPoker, and a large online casino, PartyCasino.

Internet companies have long been aware of US laws prohibiting the enforcement of over an extended period of time appeared to give industry license to operate without of penalty.

Until now, many in the online gambling industry have thought that, to avoid prosecution, online gambling executives needed to do was to not travel to the U.S. However, the industry is in turmoil following the controversial extradition of three UK bankers to face charges in the US last week. Industry analysts now have real concerns that the US government will further aggressively attack the industry and that more charges will be laid in the near future.

Almost unbelievably, industry analysts are saying that this week's developments will probably do little to slow down the industry's rapid growth, with dome analysts claiming shares in online gambling firms were heavily underpriced even before today's drama.